Question
International Trade Question How does PURE differs from MIXED (Ricardo-Viner) specific factors model. Please provide clear explanations and graphs if possible, your help is greatly
International Trade Question
How does PURE differs from MIXED (Ricardo-Viner) specific factors model. Please provide clear explanations and graphs if possible, your help is greatly appreciated!
Ps/ the answer for mixed is B am I right? not sure about pure tho
Q: In the Pure Specific Factors model with two sectors, Cars (C) and Wheat (W), Capital (K) is specific to C and Land (A) is specific to W. If the government imposes a tariff on the imports of W then
A.Both owners of K and owners of A will benefit.
B.Owners of A will benefit.
C.Owners of K will benefit.
D.Neither owners of K nor owners of A will benefit.
Q. In the Mixed Specific Factors model with two sectors, Cars (C) and Wheat (W), Capital (K) is specific to C and Land (A) is specific to W. If the government imposes a tariff on the imports of W then
A.Both owners of K and owners of A will benefit.
B.Owners of A will benefit.
C.Owners of K will benefit.
D.Neither owners of K nor owners of A will benefit.
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